Hungary VAT Rates 2026

Hungary VAT Rates at a Glance

What is VAT Called in Hungary?

In Hungary, value added tax is officially known as Általános forgalmi adó (ÁFA). It is administered by the Nemzeti Adó- és Vámhivatal (NAV — National Tax and Customs Administration).

Like all EU member states, Hungary operates VAT under the EU VAT Directive (2006/112/EC), which sets the framework for standard and reduced rates, exemptions, and the reverse charge mechanism across all 27 EU countries. The Nemzeti Adó- és Vámhivatal is responsible for VAT registration, returns, enforcement, and issuing VAT rulings.

Reduced VAT Rate in Hungary (18%)

Hungary applies a reduced VAT rate of 18% to the following categories of goods and services (subject to the specific conditions of Hungary VAT law):

• ✓Hotel accommodation
• ✓Restaurant meals
• ✓Domestic services (household cleaning, child-minding)
• ✓Internet access services
• ✓Certain medical devices

Additionally, Hungary applies a super-reduced rate of 5% to:

• ✓Certain foodstuffs (pork, poultry, eggs, milk, fish)
• ✓Restaurant meals (food only)
• ✓Books (physical)
• ✓Newspapers and periodicals
• ✓District heating
• ✓New residential property construction

Note: Reduced rate eligibility depends on the specific nature of the supply and how goods or services are classified under Hungary VAT law. Always verify classification with a local VAT adviser before applying a reduced rate.

VAT Registration in Hungary

Once registered, businesses are issued a Hungary VAT number (HU + digits). This number must appear on all invoices and be verified on the EU VIES database before zero-rating intra-EU B2B supplies.

Non-EU businesses are generally required to register for Hungary VAT with no registration threshold — the first taxable supply in Hungary triggers an immediate registration obligation. Non-established businesses may need to appoint a local fiscal representative depending on the nature and location of their business.

Filing VAT Returns in Hungary

VAT returns in Hungary must be submitted electronically via the Nemzeti Adó- és Vámhivatal portal. Most member states require payment of VAT due simultaneously with the return submission — check whether Hungary requires separate payment instructions or if bank debit is automatic.

VAT Invoice Requirements in Hungary

To be valid for VAT recovery purposes, Hungary VAT invoices must include the following mandatory information (consistent with Article 226 of the EU VAT Directive, plus any additional national requirements):

1. 1Supplier name, address and Hungarian tax number (adószám: 8 digits-1 digit-2 digits)
2. 2Hungarian VAT number (HU + 8 digits)
3. 3Customer name, address and tax number
4. 4Date of issue and date of supply
5. 5Sequential invoice number
6. 6Net amount, VAT rate, VAT amount
7. 7Total gross amount in HUF
8. 8RTIR upload confirmation number (for B2B invoices above HUF 100,000)

Simplified invoices (without all fields above) may be issued where the total amount does not exceed €100 excluding VAT, subject to Hungary's national rules on simplified invoicing.

Reverse Charge Mechanism in Hungary

Hungary applies reverse charge to construction services, certain agricultural supplies, and B2B services from abroad. Domestic reverse charge also applies to supplies of scrap metal, grains, and steel products.

Under the reverse charge, the recipient of the supply (rather than the supplier) is responsible for declaring and paying VAT. The recipient self-accounts for VAT on their Hungary VAT return — declaring both output VAT (as if they had charged it) and input VAT (which they may recover subject to normal rules). The supplier issues an invoice without VAT with a note such as "Reverse charge — Article 196 EU VAT Directive."

EU OSS and Hungary

Hungarian businesses register for EU OSS via NAV's online portal. OSS returns are filed in Euros, with conversion from HUF required for the underlying transactions.

Under the EU's One Stop Shop (OSS) scheme introduced in July 2021, businesses selling digital services or goods B2C to customers in Hungary (and other EU countries) can register in a single EU member state and file a single quarterly return covering all EU consumer sales. OSS avoids the need to register for VAT separately in each of the 27 EU member states where you have customers. The Hungary VAT due on your OSS return is paid in your registration country and forwarded to Hungary's Nemzeti Adó- és Vámhivatal.

Hungary VAT: Background & History

Hungary has the highest standard VAT rate in the EU at 27%, a rate it has maintained since 2012. Hungary introduced VAT in 1988 as a socialist-era economic reform — one of the first Eastern Bloc countries to do so. Hungary's RTIR (Online Számla — Real-Time Invoice Reporting) system, launched in 2018, was revolutionary: businesses must upload invoice data to NAV within 24 hours of invoice issue (or in real-time above certain thresholds). This system has significantly reduced the Hungarian VAT gap and is now a model studied by other EU countries.

Practical VAT Compliance Tips for Hungary

Frequently Asked Questions — Hungary VAT

Hungary VAT Tools